Bema Gold Corporation says development appraisal of its Cerro Casale project in Chile confirms a £750 million net present value.

Also listed in Toronto and New York, AIM-quoted Bema says the appraisal, conducted by Mine Quarry Engineering Services, suggests Cwerro Casale could hold 23 million oz of gold and six billion lbs of copper. The study envisages a 13.1 per cent internal rate of return on a £1.05 billion investment, assuming prices of $450 an ounce for gold and $1.5 per lb of copper, both well below present market levels.

Shares at Bema, whose interests span South America, South Africa and Russia, have doubled in a year to 301p, up 7p this morning, where they value the company at £1.4 billion. Currently the subject of bid speculation, they might show some short-term action.

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